Each year, the Aristocrats lists are updated. The dividend aristocrats are a group of US companies showing 25 consecutive years of dividend increases. When you think about it, only the strongest companies can make this list. In order to be part of this elite group, a company must be in a good position to increase both their sales and earnings year after year on a very consistent basis. If one fails to do so, it will quickly become impossible to raise its dividend. Canadians also have their dividend aristocrats, but the criteria used for selection is fairly different.

 

Canadian Aristocrat Requirements

In order to be considered a S&P Canadian Dividend Aristocrat, the company must have increased its dividend payout every year for five years but have a free pass and is still eligible if the company maintains the same dividend payout for a maximum of 2 years. Therefore, we are looking at stocks that have a good potential for raising its dividend but still pretty far away from 25 consecutive years.

The Most Important Rule

Along with the main rule, the stock must also have a minimum market capitalization of $300M and have increased its dividend in the first year of the prior five years reviewed for dividend growth.

 

As you can see, it’s not “that difficult” to qualify for the Canadian Aristocrats list. But the Canadian stock market is less diversified and we don’t have an economy promoting behemoths such as Colgate-Palmolive (CL) or Procter & Gamble (PG). Still, they are pretty solid dividend payers.

 

Here’s the current list of Canadian Aristocrats:

*The list is provided by Dividend Stocks Rock

Symbol
Name
Market Cap
DVD Yield
P/E
Payout
EPS Basic
Rev
DVD Growth
AGF.B.TOAGF Management Limited1$B9.2135.52302.22-22.44-8.156.72
ACO.X.TOAtco Ltd.6$B1.6614.3355.989.175.959.8
BNS.TOBank of Nova Scotia78.2$B3.9812.3550.5511.0512.754.48
BCE.TOBCE Inc36.4$B5.2718.39104.720.252.9326.13
BDT.TOBird Construction Inc0.6$B5.6247.56263.47-285.089.26
BYD.UN.TOBoyd Group Income Fund0.5$B1.42#N/A-233.2911.8917.9572.11
CAE.TOCAE, Inc.3.9$B1.6221.7623.11-2.098.1336.56
CCO.TOCameco Corp10.5$B1.5132.9849.66-8.752.2410.76
CNR.TOCanadian National Railway Co51.5$B1.6120.0627.729.374.5113.33
CNQ.TOCanadian Natural Resources Ltd43.2$B2.2619.1223.04-6.65.2420.26
CP.TOCanadian Pacific Railway Ltd29.8$B0.8234.1827.894.874.467.18
REF.UN.TOCanadian Real Estate Investment Trust3$B3.7535.6493.961.884.813.59
CTC.A.TOCanadian Tire Corp7.6$B1.7614.420.788.485.2611.43
CU.TOCanadian Utilities Ltd10.4$B2.6918.5930.664.9147.84
CWB.TOCanadian Western Bank2.8$B2.1514.5734.518.2613.9910.76
CCL.B.TOCCL Industries Inc.3$B1.0731.3728.3915.579.718.96
CGX.TOCineplex Inc2.6$B3.4331.46105.4719.146.632.6
CCA.TOCogeco Cable Inc.2.7$B2.1814.0327.276.729.4721.06
CGO.TOCogeco Inc.0.9$B1.7112.6771.0920.4910.5922.1
CMG.TOComputer Modelling Group Ltd.1.1$B2.5942.74106.6623.5319.6426.19
CSU.TOConstellation Software Inc.5.5$B1.7255.7292.7240.3626.4181.15
CJR.B.TOCorus Entertainment, Inc.2$B4.287.9225.234.290.416.89
DII.B.TODorel Industries, Inc.1.2$B3.5620.1368.4-14.14-0.3316.16
EMA.TOEmera, Inc.4.7$B4.3320.4691.135.4110.867.92
EMP.A.TOEmpire Company Limited3.8$B1.5813.0121.863.314.727.78
ENB.TOEnbridge, Inc.40.8$B2.8590.6209.86-21.2815.3313.81
ENF.TOEnbridge Income Fund Holdings Inc1.4$B5.2816.36#N/A5.45-30.83N/A
ESL.TOEnghouse Systems Limited0.9$B1.1434.9429.2431.9527.6823.73
ESI.TOEnsign Energy Services Inc.2.6$B2.7917.2744.83-2.66.855.67
ET.TOEvertz Technologies Ltd1.3$B3.7722.07268.61-5.543.0331.06
EIF.TOExchange Income Corp0.4$B8.0249.22399.48-5.2545.562.22
FTT.TOFinning International Inc.5.1$B2.0515.330.6528.672.436.8
FTS.TOFortis, Inc.6.7$B4.0918.358.694.566.17.91
FNV.TOFranco-Nevada Corp8.6$B1.3139.63#N/A#N/A165.54N/A
MIC.TOGenworth MI Canada, Inc.3.5$B3.759.68345.031.91N/A
GS.TOGluskin Sheff & Associates, Inc.0.9$B2.5910.5293.274.383.417.08
HLF.TOHigh Liner Foods Inc0.7$B1.5723.0633.6823.1910.8223.8
HCG.TOHome Capital Group Inc1.5$B1.4711.8214.618.7816.5316.65
IGM.TOIGM Financial Inc.13.3$B4.0717.4471.451.820.161.46
IMO.TOImperial Oil Ltd43.3$B1.0215.3514.39-5.30.845.22
IFC.TOIntact Financial Corp8.8$B2.8821.2858.9324.1812.127.26
PJC.A.TOJean Coutu Group PJC Inc4.1$B1.5610.6715.96#N/A12.76N/A
KEY.TOKeyera Corp5.3$B3.4835.78119.39-6.528.546.38
LB.TOLaurentian Bank of Canada1.3$B4.4611.3447.610.936.438.78
MDI.TOMajor Drilling Group International Inc.0.7$B2.17#N/A-56.14-8.853.35N/A
MX.TOMethanex Corporation7.2$B1.1920.9835.7111.042.862.72
MRU.TOMetro Inc.5.6$B1.938.5113.4623.661.2314.52
NPR.UN.TONorthern Property Real Estate Investment Trust0.9$B5.63.2724.649.929.1612.09
PSI.TOPason Systems Inc2.3$B2.1498.44218.6-17.316.6219.23
RBA.TORitchie Bros. Auctioneers, Inc.2.7$B2.327.21#N/A-4.183.035.53
RCI.B.TORogers Communications, Inc.22$B4.2813.6652.4915.452.3111.71
SAP.TOSaputo, Inc.10.8$B1.6521.45#N/A11.87.619.25
SJR.B.TOShaw Communications, Inc.11.2$B4.0415.5746.441.0110.626.87
SCL.TOShawCor, Ltd.2.6$B1.1410.3131.6416.017.1910.56
SC.TOShoppers Drug Mart Corporation12.1$B1.8920.1137.563.233.255.8
SNC.TOSNC-Lavalin Group7$B2.07206.12#N/A-34.882.1713.9
SJ.TOStella-Jones, Inc.1.9$B0.7221.15#N/A17.4121.6120.9
SU.TOSuncor Energy Inc53.3$B2.5414282.847.0729.56
T.TOTELUS Corp24.1$B3.7319.2365.841.43.789.15
TRI.TOThomson Reuters Corporation30.4$B3.94240.71844.71-39.08-0.89-2.54
THI.TOTim Hortons, Inc.8.7$B2.0721.8837.4712.729.7626.62
TD.TOToronto-Dominion Bank94.1$B3.6714.2744.17.2513.26.54
TRP.TOTransCanada Corp35$B3.8820.82#N/A-0.811.745.02
TCL.A.TOTranscontinental Inc.1.2$B4.32#N/A-1565.06#N/A-2.7813.35
UNS.TOUni-Select Inc.0.6$B1.7927.9351.91-14.378.981.96
WIN.TOWi-Lan Inc.0.4$B4.76#N/A-105.82#N/A21.8346.73

Dividend Aristocrat Additions

 

There have been several changes this year. With gold hurting mining companies and pushing them to cut their dividend, several companies were taken off the aristocrats list. On the other hand, 8 companies were added to the list by the S&P for 2014:

 

BCE Inc (BCE) Telecom, 5.27% dividend yield

Cogeco Inc (CGO) Communication, 1.71% dividend yield

Enghouse Systems Limited (ESL) Technology (software), 1.14% dividend yield

Franco-Nevada Corp (FNV) Resource (gold mining), 1.37% dividend yield

Gluskin Sheff + Associates (GS) Financial, 2.59% dividend yield (+ special dividend)

High Liner Food Inc (HLF), Consumer (food), 1.57% dividend yield

Uni-Select Inc (UNS), industrial (auto pieces), 1.79% dividend yield

Wi LAN Inc (WIN), technology (license), 4.76% dividend yield

 

I can’t say that I’m very impressed by the dividend yield of the newcomers. BCE and WIN seem to pay an interesting dividend yield and therefore I would advise to look closely at GS since their special yearly dividend pushes their yield over 4% year after year (but it’s always a gamble). As for the rest, I rarely look at stocks paying under 2% dividend yield. I’m looking to buy companies whose dividends cover at least rate of inflation. The only exception I have made was with Disney (DIS) but their stock growth potential is very interesting.

 

Dividend Aristocrats Delisted

While the aristocrats found 8 new members, they also withdrew 5 companies from the list.

 

Reitmans Canada Ltd A (RET), Consumer (clothing), 3.48% dividend yield

Talisman Energy Inc (TLM), Resources (oil & gas), 2.73% dividend yield

Ag Growth International Inc (AFN), industrial (grain handling), 5.15% dividend yield

Atlantic Power Corporation (ATP), utilities (electricity), 12.82% dividend yield

Barrick Gold Corp (ABX), resources (gold mining), 0.96% dividend yield

 

What’s Your Favorite Aristocrat for the Year?

 

Before I tell you which my favorite is, I must admit that I personally own a few Canadian aristocrats already:

ScotiaBank (BNS)

Gluskin & Sheff (GS)

Telus (T)

 

My all time favorite is definitely Telus. This is a great company with a great future and it keeps increasing their dividend significantly. However, for 2014, you can guess that my favorite aristocrat will be Gluskin & Sheff (GS). What about you?

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9 Comments   |  

9 Comments

Adam
March 19, 2014, 9:54 am

Great list – thanks for posting.

However, your Market Cap sort isn’t working correctly as you have the “$B” in it. It is sorting Franco-Nevada above Bank of Nova Scotia for example

Adam
March 19, 2014, 9:54 am

Same thing on the Div Growth field – it isn’t sorting correctly.

Bernie
March 20, 2014, 2:13 am

Why is Plaza Retail REIT (PLZ.UN) not on the list? They have raised their dividend for 11 consecutive years.

DivGuy
March 20, 2014, 12:12 pm

Hello Adam,

thx for that, I’ll have a look at my chart.

Hello Bernie,

is it possible that PLZ.un had any modifications prior to 2014? I can’t find a stock history in google finance past 2014.

March 20, 2014, 11:24 pm

[…] The Dividend Guy shared a list of Canadian dividend aristocrats. […]

DivGuy
March 21, 2014, 9:22 am

Hello Bernie,

I’ve found the answer to your question. Look at the market cap. It has recently broke the 300M$ (2012). A minimum of 300M$ market cap must be considered to be part of the Cdn aristocrats. Probably that the S&P is considering companies with a 5yr 300M$ market cap to include them in their list.

You are right for dividend thought, they kept on increasing their payouts and they meet the aristocrat requirement. cheers,

Mike

March 21, 2014, 5:30 pm

Very interesting post. Thanks for giving us the breakdown!

March 22, 2014, 4:02 pm

Thx for sharing this info. I’m so glad because I have half of these companies in my portfolio.

March 22, 2014, 9:03 pm

My Favorite = BCE (Bell)

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